There is some evidence that the relationship between desired local government services (spending) and income is U
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There is some evidence that the relationship between desired local government services (spending) and income is U shaped – that is, lower-and higher-income voters may form a coalition to support higher amounts of local spending than desired by middle-income voters. Using two services for illustration, police protection and education, discuss why this might be the case. Remember that, in general, demand depends on price, income, and tastes.
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